New York Metro Real Estate News

When people talk about the real estate bubble, chances are they're talking about housing. They probably aren't talking about commercial property - even though prices have been soaring in that market, too.

In fact, the gloom-and-doom forecasts so common in the housing market are nearly absent from the commercial world, with local developers, brokers and economists saying that the market for Long Island offices and shopping centers is in much better shape.

That's because the region's economy, as well as the landscape, has changed in a way that experts believe will soften any fall. Back in the late 1980s, a confluence of events - collapse of the local defense industry, high interest rates, careless lending by banks, too much speculative building - made the market downturn a particularly tough period for the commercial real estate industry on Long Island. Developers reported rent decreases of more than 20 percent. Vacancy rates officially hit 20 percent and may have been as high as 40 percent if deadbeat tenants were counted.

...
by TOMOEH MURAKAMI TSE

FOR FULL STORY GO TO
Newsday http://www.newsday.com
October 31, 2005. page A.20
http://proquest.umi.com/pqdweb?did=919028861&sid=1&Fmt=3&clientId=13371&RQT=309&VName=PQD

Hot, but not bubbling badly, Commercial property prices on LI appear to face less risk than home market, partly due to lessons from the '80s;

10/31/05

11:59:59 pm Hot, but not bubbling badly, Commercial property prices on LI appear to face less risk than home market, partly due to lessons from the '80s;

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